Inc. BarCharts's Accounting 1 (Quickstudy Reference Guides - Academic) PDF

By Inc. BarCharts

ISBN-10: 142320199X

ISBN-13: 9781423201991

The fundamentals of accounting in transparent, concise, layout with worksheet examples will get scholars in the course of the first semester and offers new enterprise humans a foundation to start. certainly one of our greatest promoting enterprise titles!

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Additional resources for Accounting 1 (Quickstudy Reference Guides - Academic)

Sample text

From 1 January 2009, entities should report this information in either of two ways: „ in a statement of comprehensive income, which reports both ‘profit and loss’ and also ‘other comprehensive income’, or „ in two statements, an income statement followed by a statement of comprehensive income. For the purpose of your examination, the income statement is the more important of these two statements. Information about transactions by the entity with its owners in their capacity as owners (for example new share issues or dividend payments by a company) are reported in another financial statement called the statement of changes in equity or SOCIE.

Practice multiple choice questions 1 2 3 4 A trade receivable is an example of: A an asset B a liability C income A loan of $30,000 from a bank, repayable in three years’ time, is: A a current liability B a non-current liability C a current asset D a non-current asset. (1 mark) International accounting standards are written primarily with regard to the information needs of which type of users? A managers B employees C the government and government agencies D investors. (2 marks) Some of the content of the financial statements of companies might be specified by national company law.

Information is of little or no relevance if it is insignificant (immaterial). „ However, information is relevant if it is material. Deciding what is material and what is not material can be a matter of judgement. 3 Reliability Financial information must also be reliable. Users must be able to have trust in it, so that they can use the information to make their economic decisions with confidence that it is not misleading or too inaccurate. It might seem more appropriate to state that financial information ought to be accurate, rather than reliable.

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Accounting 1 (Quickstudy Reference Guides - Academic) by Inc. BarCharts


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